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Subscription based recruitment is driving evolution across the industry to the benefit of clients.

September 28, 2020

Traditional recruitment methods can be expensive and impersonal. The good news is that the recruitment industry appears to be undergoing a much-needed evolution.

Recruitment Process Outsourcing (RPO) has been around for over 15 years and has been an effective tool, for large businesses, looking to hire at scale and reduce costs. Over recent years, the RPO model has been adapted, with a rise of subscription based on-demand recruitment services, offering RPO type solutions to companies of all sizes, not just large plc’s. The flexibility they offer allows organisations to receive help across the whole talent acquisition process, from EVP and employer branding through to candidate sourcing, interviews, and offers; without adding headcount, hiring contractors, or dealing with recruitment agencies.

Like traditional RPO offerings, they place a large emphasis on forging strong relationships, building partnerships, and becoming an extension of the internal HR / recruitment function. A subscription-based model, however, allows a lot more flexibility and agility to organisations, allowing them to scale up or down depending of their requirements at any one time.

Historically, start-up and SME businesses would not have been able to take advantage of the benefits RPO’s offer organisations. With subscription packages starting from 5 hires per year for under £1000 per month, these companies can now benefit from an enhanced recruitment capability.

Using a niche market specialist for hard to fill areas, such as technology or data can also add great value to your internal recruitment functions. Outsourcing roles in specific sectors can increase candidate quality and allow the team freedom to focus on what they do best.

The cost saving is also extremely attractive for SME’s and start-ups. The average salary across the Tech and Data sector is around £45,000. Using a traditional contingent recruitment firm will cost an organisation up to £11250 per hire. For roughly the same cost, a subscription based recruitment solution can provide a company with a year’s subscription, which includes their own dedicated outsourced recruitment partner on hand to help bring on board 5 people, as well as adding value across the whole talent acquisition offering.

The agile nature they provide is why an increasing number of businesses are using them in attracting, recruiting, and retaining the right talent. Not only do companies benefit from one fixed-fee monthly cost, which is great for cashflow, they also have access to candidates when they need them.

Traditional recruitment methods will remain but recruitment providers that do not adjust their offerings will find it hard to compete with companies offering subscription-based recruitment solutions.

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